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Selected Penalty Provisions—GST/HST and QST
Note
(1) In general, where the amount is no more than seven days late, a penalty of 7% applies.
Where the amount is between eight and 14 days late, a penalty of 11% applies. In all other
cases, a 15% penalty applies.
Description
GST/HST Penalty
QST Penalty
Failure to file a return
by due date
1% of unpaid tax plus
0.25% per complete
month (not exceeding 12)
while the return
remains outstanding
$25 per day to a
maximum of $2,500
Failure to remit
tax by due date
No penalty, interest only
7%–15% of the tax
payable
1
Failure to provide
information
$100 for each failure
$100 for each failure
Failure to provide amounts
as and when required on
form GST111 (Financial
Institution GST/HST Annual
Information Return)
Lesser of:
• $1,000 and
• 1% of difference between
amounts (or 1% of total
of tax collectible and ITC
claimed depending on the
amount)
Lesser of:
• $1,000 and
• 1% of difference
between amounts
(or 1% of total of tax
collectible and ITC
claimed depending on
the amount)
Failure to recapture input
tax credits as required
5% of amount plus 1%
per month until amount
is reported (for a total
maximum of 10%)
Not applicable
False statement or
omissions attributable to
gross negligence
Greater of $250 and 25%
of the reduction in tax
50% of the tax benefit
Penalties for third
parties
Greater of $1,000 and
the lesser of 50% of the
tax benefit or $100,000
plus compensation
Greater of $1,000 and
the lesser of 50% of the
tax benefit or $100,000
plus compensation
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affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Current as of May 3, 2013